- 10-year United States (US) Treasury bond yield stays relatively calm on Monday.
- US Dollar Index posts modest recovery gains below the 99 mark.
- Wall Street looks to open the day in the negative territory.
The USD/JPY pair lost nearly 100 pips last week and started the new week in a quiet manner. As of writing, the pair was trading at 106.85, losing 0.1% on a daily basis.
Last Friday, the labour market data from the United States painted a mixed picture. Although the unemployment rate fell to its lowest level in nearly 50 years at 3.5%, nonfarm payrolls increased less than expected and the annual wage inflation dropped to 2.9%.
The US Dollar Index struggled to gain traction after the data and registered a weekly loss of 0.3% as investors price the expectation of the Federal Reserve cutting the policy rate again in October. According to the CME Group FedWatch, there is an 80% probability of a 25 basis point rate cut at the end of this month.
Market sentiment is likely to drive the pair
Meanwhile, major equity indexes in the United States capitalized on rate cut expectations and posted strong gains on Friday to make it difficult for safe-haven JPY to outperform the Greenback. However, reports of a second whistle-blower coming forward over the weekend with regards to US President Trump’s dealings with Ukraine, Wall Street might start the week on a negative note. At the moment, the S&P 500 Futures is down 0.35% on the day.
There won't be any significant macroeconomic data releases from the US on Monday. Although Federal Open Market Committee (FOMC) Chairman Powell is scheduled to deliver a speech at 17:00 GMT, he is unlikely to comment on the policy outlook.
Technical levels to watch for
|Today last price||106.84|
|Today Daily Change||-0.09|
|Today Daily Change %||-0.08|
|Today daily open||106.93|
|Previous Daily High||107.13|
|Previous Daily Low||106.58|
|Previous Weekly High||108.48|
|Previous Weekly Low||106.48|
|Previous Monthly High||108.48|
|Previous Monthly Low||105.74|
|Daily Fibonacci 38.2%||106.92|
|Daily Fibonacci 61.8%||106.79|
|Daily Pivot Point S1||106.63|
|Daily Pivot Point S2||106.33|
|Daily Pivot Point S3||106.08|
|Daily Pivot Point R1||107.18|
|Daily Pivot Point R2||107.43|
|Daily Pivot Point R3||107.73|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.